If you're in the US, there's a lot of reasons to believe the IRS will watch crypto more closely this year.
Right off the bat you have to answer this question truthfully:
Just because you say yes, doesn't mean you'll owe taxes or have taxable events.
Now the "financial interest" wording is a little ambiguous. Because if you have no taxable event, like just holding and not touching, you may think you had no interest as in "receiving interest".
If you are familiar with IRS vernacular, you may know that when they use the word "financial interest" for foreign accounts for instance, they really mean ownership. So having crypto-related accounts, owning and having any dominion over crypto would say yes. No would basically be for no-coiners.
If the IRS sent you any forms like a 1099-K or B, they already know you have crypto. You would get those on many US exchanges if you executed over 200 trades, or those trades are greater or equal to $20,000 or meet your 1099-K reporting treshold.
Additionally, if you received any rewards on exchanges like staking rewards, airdrops, received free crypto (even in stablecoin), of over $600, many exchanges will automatically report it to the IRS and you would usually receive a 1099-misc for those incomes. In any case, you'd have to report those as incomes.
If you ever had a letter or email about crypto from the IRS, they already know.
But with things like the SPARK (FLR) airdrop, you can already be sure the IRS will look more closely at airdrops and crypto this year. And have been paying a little more attention to what's been happening.
But there's still plenty of time to file. And if you already filed early, you can always amend a return. To help make the process easier and not have to worry about the calculations, there's crypto tax software to help you like zenledger.io, bitcoin.tax etc. You just import the information from the exchanges, and it will do all the math for you. You just then import their report into your tax filing software like H&R block, Turbotax, etc...
If you need help with the more complicated process of reporting your Moon income and gains, I wrote a guide on that: https://np.reddit.com/r/CryptoCurrency/comments/lhsh7q/simple_walkthrough_on_how_to_file_your_moon_taxes/
No comments:
Post a Comment